Bahrain’s digital economy is making major headlines as the country’s eCommerce sector recorded a significant 28% year-on-year (YoY) growth in the first quarter of 2025, according to a new report from the Ministry of Industry and Commerce. This strong growth rate demonstrates Bahrain’s accelerating shift toward digital retail and the increasing confidence of consumers in online platforms.
This growth trend comes at a time when countries across the Gulf region are investing heavily in digital transformation, and Bahrain is emerging as a regional leader in the eCommerce space.
A New Digital Era for Bahrain’s Economy
The 28% YoY growth reflects a major shift in consumer behavior, with more Bahrainis choosing to shop online for goods and services. According to Bahrain Economic Development Board, the country has been working on expanding digital infrastructure and encouraging local businesses to adopt eCommerce platforms through various initiatives and policy changes.
Retailers have also reported increased revenues from online channels as compared to brick-and-mortar sales. The rise in eCommerce activity is also attributed to faster mobile internet speeds, increasing smartphone usage, and consumer trust in digital payment methods.
Key Sectors Driving the Growth
Not all sectors contributed equally to the growth. The top-performing segments in Q1 2025 include:
- Fashion and Apparel
- Electronics and Gadgets
- Grocery and Daily Essentials
- Beauty and Personal Care
- Online Education and Digital Services
These industries saw double-digit growth rates in online sales, driven by aggressive digital marketing, mobile app optimization, and customer-friendly return policies.
One key trend is the rise of mobile-first shopping behavior, with nearly 70% of online purchases made through smartphones, according to data from Statista. Retailers who optimized their platforms for mobile browsing saw significantly higher conversion rates.
Government Policies Fueling the Rise
Bahrain’s leadership has played an active role in boosting the digital economy. The government’s Digital Economy Strategy 2022-2026 laid the groundwork for this growth by:
- Offering subsidies and training for SMEs to adopt online selling tools
- Partnering with international logistics providers to speed up delivery infrastructure
- Enforcing consumer protection laws in the digital space
- Promoting cashless payments through campaigns and fintech partnerships
In Q1 2025 alone, over 3,000 new online businesses were registered, as per the Ministry of Industry and Commerce. Many of these are small businesses that went digital during or after the pandemic and have now found long-term success online.
Payment and Logistics Innovations
The rise of digital wallets, Buy Now Pay Later (BNPL) services, and secure online transactions has made it easier for people to shop online with confidence. Bahrain’s fintech ecosystem, led by platforms like BenefitPay, continues to offer seamless payment experiences to users.
In terms of logistics, companies like Aramex, DHL, and Bahrain Post have expanded same-day and next-day delivery services across major cities. These logistics improvements are removing one of the main barriers that previously slowed the growth of online shopping.
Furthermore, AI and machine learning tools are now being integrated into Bahrain’s leading eCommerce platforms to improve product recommendations, customer service, and fraud detection.
Local Brands Taking the Lead
While global platforms like Amazon and Noon are popular, Bahrain’s local eCommerce startups are seeing rising popularity. Brands like Homiez, GetBaqala, and Shop Bahrain are tapping into niche markets by offering tailored products and localized service.
For example, Homiez has seen a 40% increase in monthly orders since launching its mobile app and focusing on Bahrain-based vendors.
Customer Satisfaction on the Rise
One of the strongest indicators of sustained growth is consumer satisfaction. Surveys conducted by local news portals show that:
- 88% of Bahraini online shoppers find the process “very convenient”
- 72% prefer online shopping due to wider product selection
- 65% say they shop online at least once a week
Additionally, the return and refund policies have become more transparent, and customer service support in local languages has helped improve overall satisfaction.
Bahrain as a Regional eCommerce Hub?
With this growth, Bahrain is now positioning itself as a potential eCommerce hub for the Gulf Cooperation Council (GCC) region. Its central location, high internet penetration, and digital-friendly governance provide the perfect setting for cross-border eCommerce growth.
In fact, Bahrain has started offering incentives for regional brands to set up warehouses and distribution centers in the country. This helps reduce shipping costs and time for customers in nearby markets like Saudi Arabia, UAE, and Kuwait.
What’s Next for 2025?
Experts predict that Bahrain’s eCommerce industry could grow another 25-30% by the end of 2025, especially if local companies continue to invest in digital marketing, logistics, and customer support.
With the upcoming launch of government-backed initiatives like the “Digital Retail Acceleration Fund” and new fintech sandboxes, 2025 is expected to be a landmark year for the country’s digital trade future.
Final Thoughts
Bahrain’s 28% YoY eCommerce growth in Q1 2025 is more than just a number—it is a clear sign of a shifting economy that is adapting to the digital age. From tech-driven platforms to mobile-first consumers, the country is fast becoming a success story in the Middle East’s online retail revolution.
As the market matures, it is essential for both small and large retailers to focus on customer experience, data-driven decisions, and innovation. Bahrain’s digital journey is just getting started, and Q1 2025 has set the stage for an even stronger online future.
Also Read – Bahrain Airport’s Face-ID Boarding System Shocks Travelers
